Memoori’s
brand new report shows that the combined market for
Energy Software in Smart Buildings (comprised of Enterprise Energy
Management, BECS Supervisory Software and Smart Building to Smart Grid
Interface Software) will rise to nearly $10Bn by 2020, with related
software on the Smart Grid side growing at a healthy 12% CAGR to nearly
$2bn by 2020.

North America Leads
the Way on Demand Response: North America leads the
way in terms of smart building to smart grid software sales with some
70% of the overall market, thanks to a pioneering approach to demand
response and a conducive policy environment; But other regions are
catching up to the possibilities and their access to quality data is
being boosted by government mandated smart meter rollouts.

Significant Barriers continue to encumber market growth. A
lack of
common standards and cyber security concerns continue to encumber
market growth, with energy and buildings executives commonly citing
these two factors as the key challenges to effective smart energy
solution implementation and improved integration between smart grids
and smart buildings.

ESCOs consolidate their market positions across the energy value
chain.
The large energy services companies (ESCOs) such as Siemens, Schneider
Electric, Honeywell and Johnson Controls are all pursuing aggressive
acquisition policies to shore up and expand their capabilities across
the energy value chain.

Largely driven by these ESCOs, the report shows a total of 459 deals
pertaining to the market between 2010 and 2015 as these firms look to
build the big data skill sets required to leverage the opportunities
around the Internet of Things and develop new Enterprise Energy
Management Systems (EEMS), Demand Response Management Systems (DRMS),
Distributed Energy Management Systems (DERMS), and Distributed Energy
Storage Systems offerings.

The IoT offers new opportunities but plenty of challenges too. We
believe that the combined developments related to the key technological
forces that underpin the IoT, namely Big Data, cloud computing and
mobility are having a profound disruptive effect on business models and
operational models in the Energy and Smart Buildings markets. More than
500 smart grid vendors are already competing and partnering to take
advantage of the opportunities.